Trade Regulation Rule Relating to Power Output Claims for Amplifiers Utilized in Home Entertainment Products

FEDERAL TRADE COMMISSION

16 CFR Part 432

Trade Regulation Rule Relating to Power Output Claims for

Amplifiers Utilized in Home Entertainment Products

AGENCY: Federal Trade Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Trade Commission (``Commission'' or ``FTC''), is

commencing a rulemaking proceeding to amend its Rules relating to Power

Output Claims for Amplifiers Utilized in Home Entertainment Products

(the ``Amplifier Rule'' or the ``Rule''). The Commission proposes

amending the Rule to: exempt sellers who make power output claims in

media advertising from the requirement to disclose total rated harmonic

distortion and the associated power bandwidth and impedance ratings;

clarify the manner in which the Rule's testing procedures apply to

self-powered subwoofer-satellite combination speaker systems; and

reduce the preconditioning power output requirement from one-third of

rated power to one-eighth of rated power. The Commission is commencing

this rulemaking because of the comments filed in response to its

Advanced Notice of Proposed Rulemaking (``ANPR''), and other

information discussed in this notice. The notice includes a description

of the procedures to be followed, an invitation to submit written

comments, a list of questions and issues upon which the Commission

particularly desires comments, and instructions for prospective

witnesses and other interested persons who desire to participate in a

hearing where oral testimony could be presented.

DATES: Written comments must be submitted on or before September 17,

1999. Notifications of interest in testifying must be submitted on or

before September 17, 1999. If interested parties request the

opportunity to present testimony, the Commission will publish a

document in the Federal Register, stating the time and place at which

the hearings will be held and describing the procedures that will be

followed in conducting the hearings. In addition to submitting a

request to testify, interested parties who wish to present testimony

must submit, on or before September 17, 1999, a written comment or

statement that describes the issues on which the party wishes to

testify and the nature of the testimony to be given. If there is no

interest in a hearing, the Commission will base its decision on the

written rulemaking record.

ADDRESSES: Written comments and requests to testify should be submitted

to Office of the Secretary, Federal Trade Commission, Room H-159, 600

Pennsylvania Ave., NW., Washington, DC 20580. Comments and requests to

testify should be identified as ``16 CFR Part 432 Comment--Amplifier

Rule'' and ``16 CFR Part 432 Request to Testify--Amplifier Rule,''

respectively. If possible, submit comments both in writing and on a

personal computer diskette in Word Perfect or other word processing

format (to assist in processing, please identify the format and version

used). Written comments should be submitted, when feasible and not

burdensome, in five copies.

FOR FURTHER INFORMATION CONTACT: Dennis Murphy, Economist, Division of

Consumer Protection, Bureau of Economics, (202) 326-3524, or Neil

Blickman, Attorney, Division of Enforcement, Bureau of Consumer

Protection, (202) 326-3038, Federal Trade Commission, Washington, DC

20580.

SUPPLEMENTARY INFORMATION:

Part A--Introduction

This Notice of Proposed Rulemaking (``NPR'') is being published

pursuant to section 18 of the Federal Trade Commission (``FTC'') Act,

15 U.S.C. 57a et seq., the provisions of part 1, subpart B of the

Commission's rules of practice, 16 CFR 1.7, and 5 U.S.C. 551 et seq.

This authority permits the Commission to promulgate, modify, and repeal

trade regulation rules that define with specificity acts or practices

that are unfair or deceptive in or affecting commerce within the

meaning of section 5(a)(1) of the FTC Act, 15 U.S.C. 45(a)(1). The

Commission is undertaking this rulemaking proceeding as part of the

Commission's ongoing program of evaluating trade regulation rules and

industry guides to determine their effectiveness, impact, cost and

need.\1\

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\1\ In accordance with section 18 of the FTC Act, 15 U.S.C. 57a,

the Commission submitted this NPR to the Chairman of the Committee

on Commerce, Science, and Transportation, Untied States Senate, and

the Chairman of the Committee on Commerce, United States House of

Representatives, 30 days prior to its publication in the Federal

Register.

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The Amplifier Rule was promulgated on May 3, 1974 (39 FR 15387), to

assist consumers in purchasing power amplification equipment for home

entertainment purposes by standardizing the measurement and disclosure

of various performance characteristics of the equipment. On April 7,

1997, the Commission published a Federal Register Notice (``FRN'')

seeking comment on the rule as part of an ongoing project to review all

Commission rules and guides to determine their current effectiveness

and impact (62 FR 16500). This FRN sought comment on the costs and

benefits of the Rule, what changes in the Rule would increase its

benefits to purchasers and how those changes would affect compliance

costs, and whether technological or marketplace changes have affected

the Rule. The FRN also sought comment on issues related to the Rule's

product coverage,

[[Page 38611]]

test procedures,and disclosure requirements.

The comments in response to the FRN generally expressed continuing

support for the Rule, stating that it has given consumers a

standardized method of comparing the power output of audio amplifiers,

and has created a level playing field among competitors. The comments

also suggested that there have been technological and marketplace

changes that may warrant modifications to the Rule's testing and

disclosure requirements, and a clarification of the Rule's

applicability to self-powered loudspeakers for use with personal

computers and home stereo systems. Certain comments also recommended

that the Commission expand the Rule's coverage to include automotive

sound amplification products. On the basis of this review, the

Commission determined to retain the Rule, but to seek additional

comment on possible amendments to the Rule.

The Commission published an Advanced Notice of Proposed Rulemaking

(``ANPR'') on July 9, 1998 (63 FR 37238), seeking public comment on

whether it should initiate a rulemaking proceeding by publishing a

Notice of Proposed Rulemaking (``NPR'') under section 18 of the FTC

Act, 15 U.S.C. 57a. The ANPR solicited specific comment on whether the

Commission should (1) eliminate certain disclosure requirements in

media advertising; (2) clarify testing procedures for self-powered

speakers; and (3) amend certain required test procedures that may

impose unnecessary costs on manufacturers. The ANPR also announced that

the Commission had determined not to initiate a proceeding to amend the

Rule to cover power ratings for automotive sound amplification

equipment. Finally, the Commission published elsewhere in the July 9,

Federal Register a Notice of Final Action announcing a non-substantive

technical amendment to the Rule clarifying that the Rule covered self-

powered loudspeakers for use in the home (63 FR 37234).

The ANPR elicited five written comments on the possible amendments

described therein.\2\ Based on the comments and the evidence discussed

below, the Commission proposes to amend the Rule in the following ways.

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\2\ The commenters were: Consumer Electronics Manufacturers

Association (CEMA)(1); Wass AudioDigital (Wass)(2);

Sonance (Sonance)(3); PHI Acoustics (PHI)(4), and Velodyne

Acoustics, Inc. (Velodyne)(5). The comments are cited as ``(name of

commenter), Comment (designated number), p. __.'' All Rule ANPR

comments are on the public record and are available for public

inspection in the Public Reference Room, Room 130, Federal Trade

Commission, 600 Pennsylvania Ave., NW, Washington, DC, from 8:30

a.m. to 5 p.m., Monday through Friday, except federal holidays.

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Part B--Analysis of Proposed Amendments

1. Proposed Amendment to Required Disclosures Section of the Amplifier

Rule

a. Background

Section 432.2 of the Rule requires disclosure of maximum rated

total harmonic distortion (``THD''), power bandwidth, and impedance

whenever a power claim is made in any advertising, including

advertising by retail stores, direct mail merchants, and manufacturers.

In the ANPR, the Commission concluded tentatively that improvements in

amplifier technology since the Rule's promulgation in 1974 appeared to

have reduced the benefits to consumers of disclosure of THD in medic

advertising in the ANPR, the Commission also concluded tentatively that

an insufficient number of consumers would understand the meaning and

significance of the remaining triggered disclosures concerning power

bandwidth and impedance to justify their publication in media

advertising. Accordingly, the ANPR sought comment on whether the

Commission should initiate a rulemaking proceeding to amend the Rule to

exempt media advertising, including advertising on the Internet, from

disclosure of THD and the associated power bandwidth and impedance

ratings when a power output claim is made. In the ANPR, the Commission

tentatively concluded further that the proposed exemption should be

conditioned on the requirement that the primary power output

specification disclosed in any advertising distributed through the

media be the manufacturer's rated minimum sine wave continuous average

power output, per channel, at an impedance of 8 ohms, or, if the

amplifier is not designed for an 8-ohm impedance, at the impedance for

which the amplifier is primarily designed.

Finally, the ANPR explained the Commission's tentative conclusion

that publication of all other power output claims currently subject to

the Rule, including those appearing in manufacturer specification

sheets that are either in print or reproduced on the Internet, should

continue to trigger the requirement that the seller provide the full

complement of disclosures concerning power bandwidth, maximum harmonic

distortion, and impedance, so that interested consumers could obtain

this information prior to purchase.

The Commission received four comments on the tentatively proposed

exemption of THD, bandwidth, and impedance disclosures in media

advertising. CEMA, the principal trade association for the electronics

industry, supported the proposed exemption, including the requirement

that the primary power output specification disclosed in media

advertising be continuous per-channel output at an 8-ohm impedance

(unless the amplifier is designed primarily for a different impedance

level).\3\ Velodyne, a manufacturer of powered loudspeakers, also

supported the exemption of THD and bandwidth disclosures in media

advertising, stating that they contain little useful information for

today's consumer.\4\ This commenter suggested, however,that the

standardized impedance value for power output claims be 4 ohms rather

than the proposed 8 ohms.\5\ No explanation was provided for this

suggestion. A third commenter, Wass, opposed elimination of the

required THD, bandwidth, and impedance disclosures in advertising,

stating that sellers could take unfair advantage of the consumer

through in-store sales techniques that obscure the true performance

capabilities of an amplifier.\6\ Finally, a fourth commenter, Sonance,

stated simply that the relationship between power and distortion is

vital to specifying power output, and recommended against the

tentatively proposed exemption.\7\

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\3\ CEMA, (1), pp. 2-3.

\4\ Velodyne, (5) p. 1.

\5\ Id.

\6\ Wass, (2), p. 3.

\7\ Sonance, (3), p. 1.

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b. Proposed Amendment and Reasons Therefore

Based on its review of the comments on its ANPR, the Commission has

reason to believe that the disclosure of THD, power bandwidth, and

impedance in media advertising that contains a triggering power output

claim no longer provides sufficient consumer benefit to justify the

associated increase in advertising costs. Two of the commenters stated

that the disclosures were of little value. Two commenters opposed the

tentatively proposed exemption, with one expressing concern that

eliminating the disclosure requirements in media advertising would

allow sales personnel to take advantage of consumers at retail stores.

As the Commission noted in the ANPR, however, very few amplifiers in

today's market generate high levels of THD (e.g., more than one

percent) using the FTC testing protocol. Further, those few

[[Page 38612]]

amplifiers that do generate appreciable levels of THD tend to be very

expensive vacuum tube designs that are sold to a specialized group of

consumers that may not consider THD specifications an important

consideration in their purchase decisions. Thus, it would not appear

that sales personnel at retail stores would have an appreciable

incentive to mislead consumers concerning the distortion

characteristics of an amplifier. Finally, consumers who are interested

in the Rule's THD, power bandwidth, and impedance specifications should

be able to find such information relatively easily in product brochures

at retail stores or on the Internet.

Commenters on the ANPR did not agree on which impedance value

should serve as the standard for power output claims in media

advertising under the tentatively proposed disclosure exemption. CEMA

endorsed the value of 8 ohms suggested in the ANPR. Velodyne, however,

commented that the standardized impedance value should be 4 ohms. The

Commission notes that, under the proposed exemption, for amplifiers

designed to drive a specific loudspeaker in an integrated powered

configuration, the seller could base power output claims on an

impedance of 4 ohms, if the amplifier is powering a loudspeaker that is

rated at a nominal impedance of 4 ohms. Although the Commission has

reason to believe that the majority of non-powered loudspeakers are

rated at a nominal impedance of 8 ohms, and that this value should

therefore be adopted as the basis for power output claims in media

advertising for separate stand-alone amplifiers, this NPR solicits

further comment on whether the Commission's tentative conclusion on

this issue is correct.

Accordingly, the Commission proposes amending Sec. 432.2 of the

Rule to exempt advertising disseminated through the media, including

advertising on the Internet, from disclosure of total rated harmonic

distortion and the associated power bandwidth and impedance ratings

when a power output claim is made. The exemption for advertising

disseminated through the media would be conditioned on the requirement

that the primary power output specification disclosed in any media

advertising be the manufacturer's rated minimum sine wave continuous

average power output, per channel, at an impedance of 8 ohms, or, if

the amplifier is not designed for an 8-ohm impedance, at the impedance

for which the amplifier is primarily designed. Publication of all other

power output claims currently subject to the Rule, including those

appearing in manufacturer specification sheets that are either in print

or reproduced on the Internet, would continue to trigger the

requirement that the seller provide the full complement of disclosures

concerning power bandwidth, maximum harmonic distortion, and impedance,

so that interested consumers could obtain this information prior to

purchase.

2. Proposed Amendment Relating to Self-Powered Loudspeakers

a. Background

When the FRN was published, the Rule did not specifically mention

self-powered speakers as an example of sound amplification equipment

manufactured or sold for home entertainment purposes. In the FRN, the

Commission solicited comment on its tentative conclusion that the Rule

covers: (A) Self-powered speakers for use with (i) home computers, (ii)

home sound systems, (iii) home multimedia systems; and (B) other sound

power amplification equipment for home computers. On July 9, 1998, the

Commission published in the Federal Register a non-substantive

technical amendment to the Rule to clarify that the Rule applies to the

types of self-powered loadspeakers enumerated above (63 FR 37234).

In the ANPR published elsewhere in the July 9, 1998 Federal

Register (63 FR 37238), the Commission explained that comments received

in response to the FRN indicated that a clarification was needed

concerning the testing procedure that should be followed in applying

the Rule's continuous power rating protocol to self-powered subwoofer-

satellite combination speaker systems that employ two or more power

amplifiers sharing a common power supply. These comments contained

recommendations for two alternative approaches for such combination

self-powered speakers. The first proposed procedure was for power

measurements to be made with all associated channels of both the

subwoofer and satellite amplifiers driven simultaneously to full power

using a test tone at the system's crossover frequency. The second

proposal was to allow manufacturers of such equipment to test the

subwoofer and satellite amplifiers separately over their respective

frequency bandwidth.

In the ANPR, the Commission announced its tentative conclusion that

the second procedure was more appropriate, given the types of power

demands combination self-powered speakers would most likely encounter

in actual home use. Accordingly, in the ANPR the Commission sought

comment on whether to initiate a rulemaking proceeding to clarify the

Amplifier Rule by amending Sec. 432.2 of the Rule to included a note

stating that, for self-powered combination speaker systems that employ

two or more amplifiers dedicated to different portions of the audio

frequency spectrum, only those channels dedicated to the same audio

frequency spectrum need be fully driven to rated per channel power

under Sec. 432.2(a)(2).

The Commission received three comments on the tentatively proposed

clarification of testing procedures for self-powered combination

subwoofer-satellite loudspeaker systems. CEMA supported the

Commission's clarification. CEMA stated that this approach would allow

self-powered subwoofers to be rated over their operating frequency

range and at their appropriate impedance value.\8\ Sonance also

endorsed the tentative proposal to restrict the power tests of such

equipment to each amplifier's intended operating range.\9\ The final

commenter, Velodyne, disagreed with the Commission's tentative proposal

and stated that power rating tests for self-powered combination

subwoofer-satellite loudspeakers should be conducted with all channels

operating simultaneously. Velodyne proposed that the amplifiers driving

the subwoofer and satellites should be given a test signal within each

amplifer's typical range, and suggested a combination 60Hz-1,000Hz

tone.\10\ Velodyne stated that the power supply was the most costly and

critical component determining an amplifier's continuous power output

capability, and that the primary quantitative measurement of interest

to consumers is the amount of watts the power supply can deliver.\11\

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\8\ CEMA, (1), p. 3.

\9\ Sonance, (3), p. 1.

\10\ Velodyne, (5), p. 3.

\11\ Id.

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b. Proposed Amendment and Reasons Therefore

Based on the comments submitted in response to the FRN and the

ANPR, the Commission tentatively concludes that the most appropriate

method of testing self-powered combination subwoofer-satellite

loudspeaker systems under the Rule is to require simultaneous operation

only of those channels dedicated to the same portion of the audio

frequency spectrum. As noted in the ANPR, the Commission does not have

sufficient evidence to concluded that in-home use, under even strenuous

conditions, typically would place

[[Page 38613]]

maximum continuous power demands simultaneously on both the subwoofer

and satellite amplifiers at the crossover frequency. Rather, it is the

Commission's understanding that such demands are more likely to occur

in portions of the audio spectrum that would be assigned primarily

either to the subwoofer amplifier or the satellite amplifier. In

contrast, conventional stand-alone stereo amplifiers, which incorporate

left and right-channel amplifiers that must reproduce signals covering

the full musical frequency bandwidth, will more commonly be required to

meet simultaneous continuous power demands that are present in both

channels (such as might occur when a pipe organ play a sustained pedal

tone in the deep bass.

In addition, a simultaneous power test of both the subwoofer and

the satellite amplifiers would, from a practical standpoint, require a

single test signal at the crossover frequency, or a single combination

set of tones, such as the 60Hz-1,000Hz composite signal suggested by

Velodyne. This would mean that the resulting power and THD

specifications might not be valid over the full frequency range over

which each amplifier was designed to operate.

Accordingly, the Commission proposed amendment 432.2(a)(2) of the

Rule to include a clarifying note stating that, when measuring maximum

per channel output of self-powered combination speaker systems that

employ two or more amplifiers dedicated to different portions of the

audio frequency spectrum, only those channels dedicated to the same

audio frequency spectrum need be fully driven to rated per channel

power.

3. Proposed Amendment to the Amplifier Rule Preconditioning Requirement

a. Background

Section 432.3(c) of the Rule specifies that an amplifier must be

preconditioned by simultaneously operating all channels at one-third of

rated power output for one hour using a sinusoidal wave at a frequency

of 1,000Hz. The ANPR sought comment on whether the Commission should

amend the Rule to reduce the preconditioning power output requirement

from one-third of rated power to a lower figure, such as one-eighth of

rated power.

CEMA supported reducing the preconditioning power output

requirement to below the current one-third power. CEMA stated that the

current one-third power requirement is ``beyond what can be expected

through normal use in the home'' and is ``harsh and unrealistic.'' \12\

CEMA claimed that in order to meet the physical conditions presented by

the Rule's existing preconditioning requirement, manufacturers must

design and incorporate in amplifiers larger and costlier heat

sinks.\13\ CEMA listed several alternative solutions, including

operation at idle during preconditioning, operation at a small fixed

power representative of average power during typical in-home operation,

or preconditioning at one-eighth power. CEMA went on to state that the

one-eighth power option ``has the virtue of being consistent with

current industry and international testing specification.'' \14\

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\12\ CEMA, (1), p. 2

\13\ Id.

\14\ Id.

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A second commenter, Velodyne, stated that a preconditioning period

is not really necessary, but that the Commission should follow

Underwriters Laboratories' (``UL'') one-eighth power requirement if the

preconditioning requirement is retained.\15\ Velodyne did not provide

any explanation for its conclusion that no preconditioning period of

any kind was necessary under the Rule.

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\15\ Velodyne, (5), p. 1.

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A third commenter, Wass, concluded from a series of calculations

that reducing the preconditioning requirement from one-third to one-

eighth power would reduce the thermal stress (expressed in ``watts of

heat'' delivered to an amplifer's heatsink) by approximately 24

percent.\16\ Wass, however, opposed amending the Rule to provide such a

reduction in specified preconditioning power output because the

consumer would get ``a poorer unit.'' \17\ Wass did not provide any

evidence, however, that would allow the Commission to compare the

magnitude of the alleged reduction in amplifier quality with the

magnitude of the associated reduction in manufacturing costs resulting

from the one-eighth power preconditioning standard.

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\16\ Wass, (2), p. 2.

\17\ Id.

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Finally, a fourth commenter, Sonance, stated that the one-third

power preconditioning requirement should be retained and enforced

evenly.\18\ Sonance saw no technical problem with the requirement,

stating that many generations of consumer electronic products have been

built to this standard.\19\

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\18\ Sonance, (3), p. 1.

\19\ Id.

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b. Proposed Amendment and Reasons Therefore

Based on the aforementioned comments, the Commission tentatively

concludes that the current one-third power preconditioning requirement

imposes unnecessary costs on amplifier manufacturers and is not needed

to measure amplifiers accurately under conditions that represent actual

in-home use. Two of the commenters, including the principal trade

association for the electronics industry, did not believe that there

was any benefit to consumers that would justify the increased heat-sink

capacity needed to withstand the current preconditioning requirement. A

third commenter provided evidence that lowering the preconditioning

requirement to one-eighth power would in fact reduce thermal stress

significantly, and thus allow manufacturers to provide less costly heat

sink capacity.

None of the commenters provided any evidence that lowering the

preconditioning standard to one-eighth power, or some other value,

would lead to a reduction in the actual in-home performance

capabilities of amplifiers. In addition, both commenters that supported

a reduction in the preconditioning power-output requirement either

recommended the UL's one-eighth-power preconditioning standard

explicitly, or considered the UL standard an acceptable choice among

several alternatives.

Accordingly, the Commission proposes amending Sec. 432.3(c) of the

Rule by reducing the specified per-channel power output during

preconditioning from one-third of rated power output for one hour to

one-eighth of rated power output for one hour.

c. Additional Preconditioning Issue and Proposed Amendment

As discussed in Part B(2) above, the Commission is proposing to

amend the Rule to clarify the manner in which power tests should be

conducted for self-powered subwoofer-satellite combination loudspeaker

systems. In reviewing the technical issues related to this proposed

amendment, the Commission has tentatively concluded that clarification

also is required concerning the manner in which powered subwoofers

should be preconditioned under the Rule.

Section 432.3(c) of the Rule specifies a preconditioning sinusoidal

test tone of 1,000Hz. Most self-powered subwoofer systems, however,

incorporate crossover circuitry that filters out frequencies above the

bass range. Depending upon the crossover frequency and the

[[Page 38614]]

steepness of the crossover slope, such crossover circuitry may severely

attenuate a test tone of 1,000Hz and prevent the subwoofer amplifier

from being driven to one-third of rated power (as currently required by

the Rule), or even to one-eighth of rated power (as specified in the

proposed amendment). Thus, it would appear that testers of self-powered

subwoofers would need to select a preconditioning frequency

considerably lower than 1,000Hz.

The Commission, therefore, has tentatively concluded that the Rule

should be amended to clarify the preconditioning procedure for self-

powered subwoofers. The Commission does not currently believe, however,

that any such amendment should specify the precise frequency of the

test tone that is to be used in preconditioning powered subwoofers.

Powered subwoofers may differ widely in the portion of the bass

spectrum over which they are designed to operate, and, consequently,

there may not be a single preconditioning frequency that is appropriate

for all powered subwoofers. The Commission has tentatively concluded,

therefore, the testers of powered subwoofers should have the

flexibility to choose for the sinusoidal preconditioning signal any

frequency (within the intended operating bandwidth of the subwoofer

amplifier) that will allow the amplifier to be driven for one hour to

the required proportion of rated power output.

Accordingly, the Commission proposes amending Sec. 432.3(c) of the

Rule by adding an explanatory note stating that for amplifiers utilized

as a component in a self-powered subwoofer system, the sinusoidal wave

used as a preconditioning signal may be any frequency within the

amplifier's intended operating bandwidth that will allow the amplifier

to be driven to one-eighth of rated power for one hour.

Part C--Rulemaking Procedures

The Commission finds that the public interest will be served by

using expedited procedures in this proceeding. Using expedited

procedures will support the Commission's goals of clarifying existing

regulations, when necessary, and eliminating obsolete or unnecessary

regulation without an undue expenditure of resources, while ensuring

that the public has an opportunity to submit data, views and arguments

on whether the Commission should amend the Rule.

The Commission, therefore, has determined, pursuant to 16 CFR 1.20,

to use the procedures set forth in this notice. These procedures

include: (1) Publishing this Notice of Proposed Rulemaking; (2)

soliciting written comments on the Commission's proposals to amend the

Rule; (3) holding an informal hearing, if requested by interested

parties; (4) obtaining a final recommendation from staff; and (5)

announcing final Commission action in a notice published in the Federal

Register.

Part D--Requests for Public Hearings

Because written comments appear adequate to present the views of

all interested parties, a public hearing has not been scheduled. If any

person would like to present testimony at a public hearing, he or she

should follow the procedures set forth in the DATES and ADDRESSES

sections of this notice.

Part E--Section-by-Section Description of Proposed Amendments

1. Amendment Relating to Exemption from Required Disclosures in Media

Advertising

The Commission proposes to amend Sec. 432.2 to exempt media

advertising, including advertising on the Internet, from disclosure of

maximum total rated harmonic distortion, power bandwidth, and load

impedance. This exemption would be conditioned on the requirement that

the primary power output specification disclosed in any media

advertising be the manufacturer's rated minimum sine wave continuous

average power output, per channel, at an impedance of 8 ohms, or, if

the amplifier is not designed for an 8-ohm impedance, at the impedance

for which the amplifier is primarily designed. All other power output

claims currently subject to the Rule, including those appearing in

manufacturer specification sheets that are either in print or

reproduced on the Internet, would continue to trigger the full

complement of disclosures concerning power bandwidth, maximum rated

harmonic distortion, and impedance.

2. Clarifying Amendment Relating to Testing Procedures for Self-Powered

Speakers

The Commission proposes to amend Sec. 432.2(a) by adding a

clarifying note stating that, for self-powered combination speaker

systems that employ two or more amplifiers dedicated to different

portions of the audio frequency spectrum, only those channels dedicated

to the same audio frequency spectrum need be fully driven

simultaneously to rated per channel power.

3. Amendments Relating to Preconditioning

The Commission proposes to amend Sec. 432.3(c) to read as follows:

The amplifier shall be preconditioned by simultaneously

operating all channels at one-eighth of rated power output for one

hour using a sinusoidal wave at a frequency of 1,000Hz;

The Commission also proposes to amend Sec. 432.3(c) by adding an

explanatory note stating that, for amplifiers utilized as a component

in a self-powered subwoofer system, the sinusoidal wave used as a

preconditioning signal may be any frequency within the amplifier's

bandwidth that will allow the amplifier to be driven to one-eighth of

rated power for one hour.

Part F--Preliminary Regulatory Analysis and Regulatory Flexibility

Act Requirements

Under section 22 of the FTC Act, 15 U.S.C. 57b, the Commission must

issue a preliminary regulatory analysis for a proceeding to amend a

rule only when it (1) estimates that the amendment will have an annual

effect on the national economy of $100,000,000 or more; (2) estimates

that the amendment will cause a substantial change in the cost or price

of certain categories of goods or services; or (3) otherwise determines

that the amendment will have a significant effect upon covered entities

or upon consumers. The Commission has preliminarily determined that the

proposed amendments to the Rule will not have such effects on the

national economy, on the cost of sound amplification equipment, or on

covered businesses or consumers. The Commission, however, requests

comment on the economic effects of the proposed amendments.

The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-12, requires

that the agency conduct an analysis of the anticipated economic impact

of the proposed amendments on small businesses. The purpose of a

regulatory flexibility analysis is to ensure that the agency considers

impact on small entities and examines regulatory alternatives that

could achieve the regulatory purpose while minimizing burdens on small

entitles. Section 605 of the RFA, 5 U.S.C. 605, provides that such an

analysis is not required if the agency head certifies that the

regulatory action will not have a significant economic impact on a

substantial number of small entities.

Because the Amplifier Rule covers manufacturers and importers of

power amplification equipment for use in the

[[Page 38615]]

home, the Commission believes that any amendment to the Rule may affect

a substantial number of small businesses. Nevertheless, the proposed

amendments would not appear to have a significant economic impact upon

such entities. Specifically, the proposed change in the preconditioning

protocol and the proposed exemption of disclosure of THD, bandwidth,

and impedance specifications in media advertising should allow a

moderate reduction in amplifier manufacturing and advertising costs

that should benefit both small and larger businesses. The proposed

clarification of testing procedures for combination subwoofer-satellite

self-powered loudspeaker systems is the least burdensome application of

the Rule among the alternative proposals suggested by commenters, and

should not have a significant disproportionate impact on the testing

costs of small manufacturers of such power amplification equipment.

Based on available information, therefore, the Commission certifies

that amending the Amplifier Rule as proposed will not have a

significant economic impact on a substantial number of small

businesses. To ensure that no significant economic impact is being

overlooked, however, the Commission requests comments on this issue.

The Commission also seeks comments on possible alternatives to the

proposed amendments to accomplish the stated objectives. After

reviewing any comments received, the Commission will determine whether

a final regulatory flexibility analysis is appropriate.

Part G--Paperwork Reduction Act

The Amplifier Rule contains various information collection

requirements for which the Commission has obtained clearance under the

Paperwork Reduction Act, 44 U.S.C. 3501 et seq., Office of Management

and Budget (``OMB'') Control Number 3084-0105. As noted above, for

purposes of performing the tests necessary for affected entities to

make the disclosures required under the Rule, Sec. 432.3(c) of the

Rules requires that an amplifier be preconditioned by simultaneously

operating all channels at one-third of rated power output for one hour

using a sinusoidal wave at a frequency of 1,000Hz. In addition,

Sec. 432.2 of the Rules requires disclosure of the manufacturer's rated

minimum sine wave continuous average power output, in watts per

channel, maximum rated total harmonic distortion, power bandwidth, and

impedance whenever a power claim is made in advertising, including

advertising by retail stores, direct mail merchants, and manufacturers.

The proposed amendments would not increase the paperwork burden

associated with the aforementioned paperwork requirements. Three of the

amendments proposed by the Commission would not increase or alter the

Rule's paperwork requirements, and one amendment proposed by the

Commission would reduce the paperwork burden for businesses.

Consequently, there are no additional ``collection of information''

requirements included in the proposed amendments to submit to OMB for

clearance under the Paperwork Reduction Act. A separate Notice

soliciting public comment on extending the OMB clearance for the Rule

through March 31, 2002, was published in the Federal Register on

January 8, 1999 (64 FR 1203). If, as expected, OMB extends clearance

for the Rule as presently written, any reduction of the paperwork

burden associated with the Rule's requirements that may result from

this proceeding will be reflected in subsequent reviews of the Rule for

OMB clearance.

The Commission's proposed amendment to reduce the specified per-

channel power output of amplifiers during preconditioning from one-

third of rated power output for one hour to one-eighth of rated power

output for one hour would not alter or increase the paperwork burden

associated with this requirement because amplifiers must continue to be

preconditioned for one hour. Also, with respect to preconditioning, the

proposed amendment to add a note to the Rule stating that, for

amplifiers utilized as a component in a self-powered subwoofer system,

the sinusoidal wave used as a preconditioning signal may be any

frequency within the amplifier's intended operating bandwidth that will

allow the amplifier to be driven to one-eighth of rated power for one

hour, would not increase the Rule's paperwork burden. The note would

not change the Rule's requirements, but merely would clarify the

preconditioning procedure for self-powered subwoofers.

Similarly, the proposed amendment to add a note to the Rule stating

that, for self-powered combination speaker systems that employ two or

more amplifiers dedicated to different portions of the audio frequency

spectrum, only those channels dedicated to the same audio frequency

spectrum need be fully driven to rated per channel power also would not

increase the Rule's paperwork burden. The note would not alter the

Rule's requirements, but merely would clarify the test procedure that

should be followed in applying the Rule's continuous power rating

protocol to self-powered subwoofer-satellite combination speaker

systems that employ two or more power amplifiers sharing a common power

supply.

The proposed amendment of the Rule to exempt from media

advertising, including advertising on the Internet, disclosure of an

amplifier's total rated harmonic distortion and the associated power

bandwidth and impedance ratings when a power output claim for an

amplifier is made would result in reducing the Rule's paperwork burden.

Although the exemption for media advertising would be conditioned on

the requirement that the amplifier's primary power output specification

continue to be disclosed in any media advertising, the net effect of

the proposed amendment would be to reduce the Rule's paperwork burden

for businesses.

Thus, the Commission concludes that the proposed amendments would

not increase the paperwork burden associated with compliance with the

Rule. To ensure that no significant paperwork burden is being

overlooked, however, the Commission requests comments on this issue.

Part H--Additional Information for Interested Persons

1. Motions or Petitions

Any motions or petitions in connection with this proceeding must be

filed with the Secretary of the Commission.

2. Communications by Outside Parties to Commissioners or Their Advisors

Pursuant to Commission Rule 1.18(c)(1), 16 CFR 1.18(c)(1), the

Commission has determined that communications with respect to the

merits of this proceeding from any outside party to any Commissioner or

Commissioner advisor shall be subject to the following treatment.

Written communications and summaries or transcripts of oral

communications shall be placed on the rulemaking record if the

communication is received before the end of the comment period. They

shall be placed on the public record if the communication is received

later. Unless the outside party making an oral communication is a

member of Congress, such communications are permitted only if advance

notice is published in the Weekly Calendar and Notice of ``Sunshine''

Meetings.\20\

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\20\ See 15 U.S.C. 57a(i)(2)(A); 45 FR 50814 (1980); 45 FR 78626

(1980).

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[[Page 38616]]

Part I--Invitation to Comment and Questions for Comment

Members of the public are invited to comment on any issues or

concerns they believe are relevant or appropriate to the Commission's

consideration of proposed amendments to the Amplifier Rule. The

Commission requests that factual data upon which the comments are based

be submitted with the comments. In addition to the issues raised above,

the Commission solicits public comment on the costs and benefits to

industry members and consumers of each of the proposals, as well as the

specific questions identified below. These questions are designed to

assist the public and should not be construed as a limitation on the

issues on which public comment may be submitted.

The written comments submitted will be available for public

inspection in accordance with the Freedom of Information Act, 5 U.S.C.

552, and Commission regulations, on normal business days between the

hours of 8:30 a.m. to 5 p.m. at the Federal Trade Commission, 600

Pennsylvania Ave., NW, Room 130, Washington, DC 20580, (202) 326-2222.

Questions

A. Exemption From Rule-Required Disclosures in Media Advertising

(1) Should the Commission amend Sec. 432.2 of the Rule to exempt

disclosure of total rated harmonic distortion and the associated power

bandwidth and impedance ratings when a power output claim is made in

media advertising?

(2) If the Commission amends the Rule to allow the above exemption,

should this exemption be conditioned on the requirement that the

primary power output specification disclosed in any media advertising

be the manufacturer's rated minimum sine wave continuous average power

output, per channel, at an impedance of 8 ohms, or, if the amplifier is

not designed primarily for an 8-ohm impedance, at the impedance for

which the amplifier is primarily designed?

(3) What is the most common nominal impedance rating for the

majority of home loudspeakers that are designed to be driven

conventionally by separate sound amplification equipment?

B. Rule Coverage of Self-Powered Loudspeakers for Use in the Home

(4) Should the Commission amend Sec. 432.2(a) of the Rule to

clarify that, for self-powered combination speaker systems that employ

two or more amplifiers dedicated to different portions of the audio

frequency spectrum, only those channels dedicated to the same audio

frequency spectrum need be fully driven to rated per channel power

under Sec. 432.2(a)(2) of the Rule? If not, how should the Commission

amend the Rule to clarify testing procedures for such self-powered

combination speaker systems?

C. The Rule's Preconditioning Requirement

(5) Should the Commission amend Sec. 432.3(c) of the Rule to reduce

the preconditioning power output requirement from one-third of rated

power to one-eighth of rated power?

(6) Should the Commission amend Sec. 432.3(c) of the Rule to

explain that, for amplifiers utilized as a component in a self-powered

subwoofer system, the sinusoidal wave used as a preconditioning signal

may be any frequency within the amplifier's normal operating bandwidth

that will allow the amplifier to be driven to one-eighth of rated power

for one hour? If not, how should the Commission amend the Rule to

clarify the preconditioning protocol for self-powered subwoofers?

Authority: 15 U.S.C. 41-58.

List of Subjects in 16 CFR Part 432

Amplifiers, Home entertainment products, Trade practices.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 99-18302 Filed 7-16-99; 8:45 am]

BILLING CODE 6750-01-M